How to set up a business in Hungary, rules for foreign nationals

By
bencel

October 1st at 2:54pm

I would like to share some details about how to establish a new company in Hungary as a foreigner. Why is it beneficial to do it in Hungary? Are there any drawbacks? What are the points that one should pay attention? I would like to answer these questions in details.

First of all let's see what are the benefits of establishing a company in Hungary. Possibly the thing that everyone would like is that the process itself is very fast. I would say you do not need more than a couple of days to get everything done. This time includes starting from zero until acquiring an EU tax number. In addition Hungary is one of the last country where your given a tax number automatically, without any further action. Moreover the 10% corporate tax provides a perfect environment for people who are about to do foreign investment in middle Europe. This tax level is one of the lowest in the continent. The required initial capital to establish a limited company is very little. Plus Hungary in the middle of Europe with world level infrastructure. As soon as the process is done you are good to apply for a permanent resident permit and a business visa. If you got these papers, you are free to move in the Schengen zone. Actually I was planing to write about the disadvantages as well, but apart from the personal income tax ( 16% ), there is not really anything I could mention.

How is a general process flow

After the registration you immediately get a local and a European tax number, you don't need to go through other procedures. Moreover the person the registers does not actually need to be in the country, but a power of attorney is sufficient. However the manager of the company has to spend a couple of days here, since he or she needs to open a bank account for the company. This would only take a couple of days again. In order to get the registration successful, you need a creative business plan and a good analysis based on your data.

The capital

In order to establish a limited company, you need to have a capital of 3M forints, an equivalent of 10.000 Euros approximately. This money doesn't necessarily has to be paid on the company's bank account, instead you can immediately start to use it to cover the expenses the arise from the initial time. As such, the tax authority doesn't check where the capital is in the first couple of months. Such a check up is quite common in the case of foreign companies.

Our help

If you got interested in establishing a company in Hungary, we can help you to find the best solution and guide you through the procedure in various languages. There are already a lots of companies operating in Hungary and earning profit. Do not be the last one in the competition! Send us an email on hikari.code@gmail.com if something is unclear.